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Peru central bank keeps key rate unchanged

Banco Central de Reserva del Perú decided to keep its benchmark monetary policy rate at 2.25%.

Headline annual inflation stood at 1.9% in December 2019, while core inflation remained at 2.3%.

The central bank said annual inflation is likely to be around 2.0% over the forecast horizon and reiterated that this projection has a "moderate downside bias" on a potential weaker-than-expected domestic demand growth.

It warned that while global trade-related risks have weakened, the impact of recent geopolitical tensions on energy prices remains uncertain.